Despite bearish indicators and cautious liquidity patterns, whales continue accumulating Bitcoin, signaling long-term confidence as sentiment flickers and traders await Powells Jackson Hole speech for market direction.
Bitcoin [BTC] has pulled back sharply after touching a record high of $124,500, sliding to around $113,000 in the wake of the Federal Reserves July FOMC minutes released on the 20th of August.
The minutes hinted at a more cautious economic outlook, triggering profit-taking across the market.
Attention now shifts to Fed Chair Jerome Powells upcoming Jackson Hole speech on the 22nd of August, which traders expect could offer further direction for risk assets.
Bitcoin rebounds, and analysts stay strong
Despite the retreat, Bitcoin is showing tentative signs of recovery, with CoinMarketCap data placing it at $113,653.44, up 0.22% over the past 24 hours, at press time.
Remarking on this shift in sentiment, Bitcoin entrepreneur and U.S. President Donald Trumps crypto adviser David Bailey said,
One of the most hilarious aspects of Bitcoin is sentiment. It flickers like a flame. One moment euphoria, moments later panic. Many bitcoin have exchanged hands through such emotions.
As a word of advice, he further added,
Zoom out. Stay focused. Glory lies ahead.
In fact, blockchain analysts at Santiment also echoed similar sentiments when they noted,
Source: Santiment/X
Is Bitcoin season ending?
Investor sentiment also appears balanced at the moment, with CoinMarketCaps Crypto Fear and Greed Index holding steady at 50.
This neutral reading signals neither strong bullish enthusiasm nor heightened fear in the market.
Supporting this view, the platforms Altcoin Season Index sat at 43, at press time, suggesting that Bitcoin remained in the drivers seat and the market has yet to shift decisively toward altcoins.
Confirming this sentiment, Brian Armstrong, Co-founder and CEO of Coinbase, noted,
I think well see $1M per bitcoin by 2030. Regulatory clarity is finally emerging, the US government is keeping a BTC reserve, theres a growing interest for crypto ETFs, among many other factors.
What are the technical indicators hinting at?
Overall, technical indicators continue to flash bearish signals.
At the time of writing, Bitcoins RSI was sitting below the neutral zone and the MACD line was trending under the signal line alongside red histograms.
Source: Trading View
Liquidity data shows strong resistance near $115K, which may limit Bitcoins short-term upside. Meanwhile, selling pressure is building around $111K$112K, adding to the cautious outlook.
As a result, BTC remains range-bound between $111K and $115K. A breakout above $115K could signal bullish momentum, while a drop below $111K may open the door to $110K support.
Source: CoinGlass
Beneath the shaky price action, a whales $23 million buy of 200 BTC signals that big investors still trust the trend.
Such accumulation suggests that even in the midst of correction, big-money players remain willing to buy Bitcoins weakness, potentially setting the stage for the next rebound.
Ergo, Bitcoin legend Adam Back had put it best when he said,
Dips exist to transfer Bitcoin from weak hands to stronger hands.
